Less than a month ago, Fiat Chrysler Automobiles (FCA) CEO Sergio Marchionne announced his plan to spin off Ferrari, the crown jewel in the Group family for 45 years, into a separate entity and list 10 percent of its shares in the stock market.
Now, though, Bloomberg reports that the London-based FCA issued a filing in the US concerning its financial transactions with Ferrari, stating that “Prior to the separation we intend to enter other transactions, including distributions and transfers of cash from Ferrari currently estimated at 2.25 billion euros.”
In layman’s terms, FCA will receive US$2.8 billion from Ferrari before it lets the supercar manufacturer go, distributing a dividend to shareholders.
“Marchionne needs all the cash he can get in order to finance his global expansion plans”, business professor at the University of Michigan Erik Gordon says.
“He will take out all the cash he thinks he can extract, as well as desks, shelving, coffee machines and anything else he can convert to liquidity”, he added.
Apparently, having ousted Luca di Montezemolo, Marchionne will do everything he can so he can raise the funds required to make FCA able to compete with VW, Toyota and GM. Good luck with that, signiore Sergio…
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